Home winemaking has been legal since the end of Prohibition.
Home brewing was made legal during the Carter Administration.
Home distillation is a Federal crime without a license, (26 U.S.C. 5601 & 5602 makes it a felony with max fine of $10000 and max imprisonment of 5 years.)
According to the Feds, “There are numerous requirements that must be met that make it impractical to produce spirits for personal or beverage use. Some of these requirements are paying excise tax, filing an extensive application, filing a bond, providing adequate equipment to measure spirits, providing suitable tanks and pipelines, providing a separate building (other than a dwelling) and maintaining detailed records, and filing reports. All of these requirements are listed in 27 CFR Part 19.”
http://www.ttb.gov/faqs/genalcohol.shtml
Paying TAXes is the only real issue the Feds have. Producing alcohol for personal consumption should be as legal as loading your own ammo.
I would concede that there are safety issues - if the still isn't run correctly, they can really explode, plus alcohol is highly flammable. I'm sure there's a way to stipulate details just like construction codes mandating a pressure release valve on a water heater - those things can turn into a missile without a safety release.